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Social Security and Medicare Trustees Reports

Jun 6, 2018

Every year the Social Security and Medicare Boards of Trustees issue reports on the fiscal health of these essential programs. The 2018 reports not only confirmed that Social Security continues to face significant fiscal challenges but also indicated that the outlook for Medicare has worsened since last year.

The reports found that:

The retirement portion of the Social Security program will become depleted in 2034. At that point, the program would only be able to pay 77 percent of scheduled benefits.

The disability insurance portion of Social Security will become depleted in 2032, at which point it would only be able to pay 96 percent of scheduled benefits.

This year, the total cost for the Social Security program is anticipated to exceed total income (including interest) for the first time since 1982.

Medicare’s Hospital Insurance program will become insolvent in 2026, three years earlier than reported just a year ago.

“Social Security and Medicare are essential health and retirement security programs that are relied upon by millions of Americans,” Michael A. Peterson, Chairman and CEO of the Peter G. Peterson Foundation, said in a statement on the Trustees report. “Lawmakers have an obligation to reform and strengthen them for the long term.”